Equities Online Quiz

Equity holders rank lower than debt holders in the event of liquidation.

• True

• False

Dividends are mandatory payments that firms must make to equity holders.

• True

• False

Preferred stockholders typically do not have voting rights.

• True

• False

The market value of equity is always higher than its book value.

• True

• False

Stock prices generally increase when a company announces an increase in dividends.

• True

• False

The primary market is where securities are initially issued to the public.

• True

• False

The Gordon Growth Model assumes a constant dividend growth rate.

• True

• False

Equity claims on a firm have a fixed maturity date.

• True

• False

The S&P 500 index tracks five hundred leading U.S. companies.

• True

• False

An Initial Public Offering (IPO) happens in the secondary market.

• True

• False